COAC Recommends "Highly Compliant" ISF Filer Benefits to CBP

Recommended Benefits for Highly Compliant Filers

COAC recommends that CBP implement the following benefits for highly compliant ISF importers:

Best practice for C-TPAT Tier 3. For importers who are certified C-TPAT members, high compliance with ISF requirements should be deemed a “best practice” and considered with respect to elevating C-TPAT status to Tier 3 level.

Release of sealed C-TPAT containers. In cases where stratified compliance exams are undertaken by CBP (where multiple shipments are under one bill of lading), and the importer is a C-TPAT member, CBP should allow sealed containers not being examined to not only move to destination, but also be released by CBP.

Release for distribution of other C-TPAT BOLs. CBP should also consider the option of releasing for distribution other bills of lading on the same entry (where the importer is a C-TPAT member). As with the above recommendation, the released containers in question would be those not designated for exam. To address potential concerns by CBP with this request, this benefit would not include containers stuffed by the same party who stuffed the container(s) designated for exam.

(COAC notes that this benefit has been brought up by the trade in the past (prior to ISF) and CBP had voiced concern over containers possibly being released that had been stuffed by the same party stuffing the targeted container with potential compliance concerns. Prior to ISF, CBP did not have the ability to identify the “stuffer” to offer this form of conditional release. ISF now provides that data.)

Release at time of departure for unified ISF filings. In the case of unified ISF filings, conditional release in the system at time of vessel departure should be provided.

Written ISF penalty mitigation. For continuous, highly compliant importers, there may be a situation where CBP identifies a problem where it is very low frequency (e.g., one out of a thousand). CBP should take this into consideration with respect to penalties. Although CBP has indicated that this is already being considered when reviewing potential ISF violations, the Subcommittee would like to see something in writing confirming this benefit.

Mitigation of other penalties. Consideration of mitigation for other penalties (outside those associated with ISF compliance) should be given for highly compliant importers.

Streamlined C-TPAT application for SMEs. For small and medium-size enterprise (SME) importers that are highly compliant, CBP should consider a streamlined process for application to the C-TPAT program.

Definitions for “Highly Compliant” and SME Need Clarification

In presenting the recommendations to CBP, COAC notes that definitions for “highly compliant” and small and medium-size enterprises (SME) still need to be clarified.

COAC Lists Collateral Benefits of Being ISF Compliant

At CBP’s request, the ISF Subcommittee also identified the following collateral benefits of being ISF complaint:

Better visibility into supply chain. The importer has better visibility into its global supply chain since it now has a CBP process at origin. The company identifies non-standard shipments earlier in the process allowing more time to address the issue prior to arrival and potential delay.

Fewer delays at destination. Because the importer provides this data earlier, it has less delays at destination. For example, sample product that is not classified - instead of classification occurring at destination, now it occurs at origin. Because the importer is doing these types of checks 20-30 days in advance of arrival this reduces delay at the ports.

ID need to fold import compliance into procurement process earlier. Working through the ISF requirements highlighted that the import compliance team needed to be folded into the procurement process earlier.

Greater integration into overall supply chain functions. The importer has become more integrated with overall supply chain functions. Especially with items not required to be on the 7501. The importer is more engaged with parties not typically communicated with in the past, which provides more visibility and improvement in data availability and accuracy.